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Mallaby sees the danger

Sebastian Mallaby in today’s Washington Post:

With truly extraordinary speed, opinion has swung behind the radical
idea that the government should commit hundreds of billions in taxpayer
money to purchasing dud loans from banks that aren’t actually
insolvent. As recently as a week ago, no public official had even
mentioned this option. Now the Treasury, the Fed and congressional
leaders are promising its enactment within days. The scheme has gone
from invisibility to inevitability in the blink of an eye. This is
extremely dangerous.

Read the rest.